Accelerant, a data-driven risk exchange platform for the specialty insurance market, has partnered with the newly launched WoodStar Reciprocal Exchange. WoodStar Reciprocal Exchange is a mutual insurance company funded by more than $220 million in surplus notes and capital from unrelated third parties, including KKR-backed specialty finance firm Kilter Finance and funds managed by alternative asset manager Blue Owl Capital.
WoodStar will provide dedicated underwriting capabilities to Accelerant Risk Exchange and is expected to begin underwriting “meaningful direct business” in 2027.
The partnership is consistent with Accelerant’s long-term strategy of bringing low-volatility, specialty commercial insurance risks closer to high-quality institutional capital. It also aims to develop Accelerant Risk Exchange’s diversified insurance portfolio.
Credit rating agency AM Best has rated WoodStar’s financial strength rating as “A-” (Excellent).
In addition to unrelated minority investors, a de facto attorney majority-owned by Accelerant will manage the mutual insurance company.
Accelerant has no ownership interest in WoodStar but will provide underwriting, distribution, claims and other services under contractual arrangements.
Jeff Radke, CEO of Accelerant, commented: “WoodStar is another step forward for our platform. We continue to develop attractive structures for institutional investors and other venture capital providers to partner with the Accelerant Risk Exchange and support our growing member base.”
Dan Knipe, chief information officer of Kilter Finance, said: “We are impressed by Accelerant’s underwriting capabilities, deep network of MGAs and differentiated approach to aligning risk and capital. We are excited to partner with Accelerant Risk Exchange through WoodStar.
Charles Lens, Managing Director of Kilter Finance, added: “This innovative solution is yet another testament to Kilter’s insurance industry expertise.”
“We are pleased to support WoodStar, a structure designed for long-term, capital efficient growth,” said Bharath Subramanian, Managing Director at Blue Owl Capital. “We look forward to working with Accelerant Risk Exchange to provide capital to meet the diverse risk management needs of U.S. small and medium-sized enterprises.”
